29 – water transportation - global reporting initiative

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Sustainability Topics for Sectors: What do stakeholders want to know? WATER TRANSPORTATION - WATER TRANSPORTATION May 2013 Page 1 of 15 This table shows a list of topics identified as relevant by different stakeholder groups. They can be considered as stakeholders’ suggestions or requests for topics to be monitored or disclosed by organizations. Additional information about the project can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics- Research/Pages/default.aspx 29 – Water Transportation - Water Transportation 15 Topics Companies providing goods or passenger water transportation. Sustainability Category Topic Topic Specification (if available) Explanation Reference(s) 1 Constituency Environmental Emissions to air Total CO2, NOx, SOx, VOC emissions in million tonnes 153 Financial Markets & Information Users Emissions to air - GHG emissions and other emissions SO2 and NOx emissions from ships Report about GHG emissions coming from ships Shipping is a major cause of harmful air pollution in Europe and by 2020 shipping emissions of SO2 and NOx could exceed the emissions of these pollutants from all other sources in the EU. 9 Mediating Institution Ballast water management Marine pests spreading Marine pest species costing billions in damage to fisheries, coastal communities and infrastructure are spreading as the world’s shipping nations continue to largely neglect bringing into effect an international treaty 606 Civil Society Organization

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Page 1: 29 – Water Transportation - Global Reporting Initiative

Sustainability Topics for Sectors: What do stakeholders want to know?

WATER TRANSPORTATION - WATER TRANSPORTATION

May 2013 Page 1 of 15

This table shows a list of topics identified as relevant by different stakeholder groups. They can be considered as stakeholders’ suggestions or requests for topics to be monitored or disclosed by organizations.

Additional information about the project can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics-Research/Pages/default.aspx

29 – Water Transportation - Water Transportation

15 Topics

Companies providing goods or passenger water transportation.

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Environmental Emissions to air Total CO2, NOx, SOx, VOC emissions in million tonnes

153 Financial Markets & Information Users

Emissions to air - GHG emissions and other emissions

SO2 and NOx emissions from ships

Report about GHG emissions coming from ships Shipping is a major cause of harmful air pollution in Europe and by 2020 shipping emissions of SO2 and NOx could exceed the emissions of these pollutants from all other sources in the EU.

9 Mediating Institution

Ballast water management

Marine pests spreading

Marine pest species costing billions in damage to fisheries, coastal communities and infrastructure are spreading as the world’s shipping nations continue to largely neglect bringing into effect an international treaty

606 Civil Society Organization

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

setting out requirements for consistent handling and treatment of ships’ ballast water.

Since the introduction of steel hulled vessels around 120 years ago, water has been used as ballast to stabilize vessels at sea. Ballast water is pumped-in to maintain safe operating conditions throughout a voyage. This practice reduces stress on the hull, provides transverse stability, improves propulsion and maneuverability, and compensates for weight lost due to fuel and water consumption. While ballast water is essential for safe and efficient modern shipping operations, it may pose serious ecological, economic and health problems due to the multitude of marine species carried in ships’ ballast water

310 Mediating Institution

Marine pollution

Noxious and harmful substances, oil, sewage, garbage

Marine pollution can take many forms. Marine pollution from ships by oil; by noxious liquid substances carried in bulk; harmful substances carried by sea in packaged form; sewage, garbage (dumping of waste); and the prevention of air pollution from ships and ports need to be addressed in order to protect the marine environment. Marine pollution can greatly harm the environment and species in short term and long term with sometimes irreversible effects, therefore an emphasis should be put on preventing the damage caused by pollution on the marine environment rather than repairing it.

306 Mediating Institution

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Water pollution Toxic, persistent, and bioaccumulative chemicals from shipping operations

Many chemicals used in shipping operations also enter the ocean. These include cleaning agents, chemicals for water treatment, and chemicals in refrigerating equipment and fire-extinguishers. Some of these chemicals are toxic, persistent, and bioaccumulative. This means they do not break down very readily in the environment, are absorbed by marine animals, and increase in concentration up the food chain. People also become contaminated by eating contaminated fish. The problem is, these chemicals (anti-fouling paints) leach from the paint into sea water, and are absorbed by marine organisms. And tributyl tin (TBT), one of the most effective organotins, is considered by many to be the most toxic chemical deliberately released into the marine environment

610 Civil Society Organization

Emissions to water Components of emissions to water by environmental importance (according to TRI; PRTR; and EPER)

153 Financial Markets & Information Users

Hazardous materials

Ship breaking, demolition and recycling

Ship breaking or ship demolition is a type of ship disposal involving the breaking up of ships for scrap recycling. Most ships have a lifespan of a few decades before there is so much wear that refitting and repair become uneconomical. Ship breaking allows materials from the ship, especially steel, to be recycled. Equipment on board the vessel can also be reused. At the "end of the life" of a ship, many of its main components can still be used for other ships. These must not present a hazard for the environment.

308, 309 Mediating Institution

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 (the Hong Kong Convention), was adopted at a diplomatic conference held in Hong Kong, China. The Convention is aimed at ensuring that ships, when being recycled after reaching the end of their operational lives, do not pose any unnecessary risks to human health, safety and to the environment. Ships sold for scrapping may contain environmentally hazardous substances such as asbestos, heavy metals, hydrocarbons, ozone-depleting substances and others. It also addresses concerns raised about the working and environmental conditions at many of the world's ship recycling locations. Regulations in the new Convention cover: the design, construction, operation and preparation of ships so as to facilitate safe and environmentally sound recycling without compromising the safety and operational efficiency of ships; the operation of ship recycling facilities in a safe and environmentally sound manner; and the establishment of an appropriate enforcement mechanism for ship recycling, incorporating certification and reporting requirements. Upon entry into force of the Hong Kong Convention, ships to be sent for recycling will be required to carry an inventory of hazardous materials, which will be specific to each ship. An appendix to the Convention provides a list of hazardous materials the installation or use of which is prohibited or restricted in shipyards, ship repair

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

yards, and ships of Parties to the Convention. Ships will be required to have an initial survey to verify the inventory of hazardous materials, additional surveys during the life of the ship, and a final survey prior to recycling. Ship recycling yards will be required to provide a "Ship Recycling Plan", specifying the manner in which each ship will be recycled, depending on its particulars and its inventory. Parties will be required to take effective measures to ensure that ship recycling facilities under their jurisdiction comply with the Convention.

Plastics use and management

Plastic, a valuable material, can generate significant positive, or negative, impacts on economy, environment and society. Plastic should be treated as a resource and managed judiciously. A disclosure on management approach for plastics, including governance, strategy, risks, opportunities, considering: opportunities for product redesign, increasing recycled content, implementing reclaim and/or reuse which could attract economies, brand loyalty, investment, employee goodwill, and; risks to the business, stakeholder health, environment and society (including reputational/social license to operate, regulatory, investor, insurer, and liability risks) for plastics that are directly harmful to stakeholders, or indirectly through plastics being wasted/littered. Performance indicators regarding the types and volumes of plastics being used, collected and/or distributed

353, 367 Civil Society Organization

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

downstream; the portion that is made of post-consumer-recycled, bio-based, biodegradable, compostable, and/or oxobiodegradable material; the ratio of expected life-span of plastic products/packaging in contrast to the duration of their intended use; these volumes broken down by end of life disposition. Most of this disclosure can be captured through the existing GRI framework (e.g. GRI G3 EC9, EN1, EN2, EN22), but commentary is needed to ensure disclosers appreciate the materiality of plastic; other questions can be added to the framework. Refer to the Plastic Disclosure Project ( www.plasticdisclosure.org ) for more details on the suggested questions. PDP will align its questions to GRI G4 once finalised to assist organisations in disclosing to PDP and GRI easily. Plastic are in high use in these "activity groups", and can have significant positive, or negative, impacts on the economy, environment and society: Economics: There are significant cost savings available to organisations that treat plastic as a resource (e.g. through redesign, use of recycled content, reclaiming, etc.) and risks of increased direct costs (regulation, liability, cost of capital, insurance) to organisations that do not lead in this area as well as indirect economic costs to impacted industries (e.g. food production, tourism) Environment: Plastics that are wasted or littered become extremely harmful to the environment, which will have a material effect on biodiversity and the global food chain, both nearby and far outside the local area of

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

operations Society: Some plastics are harmful to stakeholders during manufacture, use and/or disposal (e.g. due to phthalates, BPA), impact the wellbeing of society (e.g. effect of litter on community spirit and their interest in sustainability). While a valuable invention, which benefits society in many ways, the negative impacts associated with society's growing use of plastic are not fully recognised. Roughly 85% of plastic used in products and packaging is not recycled, and most plastic produced in the last 60 years still remains in the environment today. Approximately 70% of discarded plastic is from single-use food and beverage containers. Discarded plastics persist in the environment for dozens or hundreds of years, accumulating across the globe, often out of sight of the producers and users. The direct physical impacts of plastic are significant to the organisation in increased costs or missed opportunities, and related economies (e.g. over $1.2bn in annual damages to ocean-related industries in Asia-Pacific), the environment through harming habitats and species, and to stakeholders health when exposed to the chemical ingredients; and are magnified if fragmentation of the plastic occurs, making it available for ingestion to additional species, who adsorb the chemical ingredients and/or the toxins carried on the plastic. These negative impacts could be avoided and turned into positive impacts, if plastic was treated as a resource to be managed judiciously (e.g. the US

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

economy lost $8.3bn worth of plastic packaging in 2010) - "It is not good business practice to throw away valuable resources".

End-of-the-life of ships

Ship dismantlement and recycling of components

Ship breaking or ship demolition is a type of ship disposal involving the breaking up of ships for scrap recycling. Most ships have a lifespan of a few decades before there is so much wear that refitting and repair become uneconomical. Ship breaking allows materials from the ship, especially steel, to be recycled. Equipment on board the vessel can also be reused. At the "end of the life" of a ship, many of its main components can still be used for other ships. These must not present a hazard for the environment. The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 (the Hong Kong Convention), was adopted at a diplomatic conference held in Hong Kong, China. The Convention is aimed at ensuring that ships, when being recycled after reaching the end of their operational lives, do not pose any unnecessary risks to human health, safety and to the environment. Ships sold for scrapping may contain environmentally hazardous substances such as asbestos, heavy metals, hydrocarbons, ozone-depleting substances and others. It also addresses concerns raised about the working and environmental conditions at many of the world's ship recycling locations. Regulations in the new Convention cover: the design, construction, operation and preparation of ships

308, 309 Mediating Institution

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

so as to facilitate safe and environmentally sound recycling without compromising the safety and operational efficiency of ships; the operation of ship recycling facilities in a safe and environmentally sound manner; and the establishment of an appropriate enforcement mechanism for ship recycling, incorporating certification and reporting requirements. Upon entry into force of the Hong Kong Convention, ships to be sent for recycling will be required to carry an inventory of hazardous materials, which will be specific to each ship. An appendix to the Convention provides a list of hazardous materials the installation or use of which is prohibited or restricted in shipyards, ship repair yards, and ships of Parties to the Convention. Ships will be required to have an initial survey to verify the inventory of hazardous materials, additional surveys during the life of the ship, and a final survey prior to recycling. Ship recycling yards will be required to provide a "Ship Recycling Plan", specifying the manner in which each ship will be recycled, depending on its particulars and its inventory. Parties will be required to take effective measures to ensure that ship recycling facilities under their jurisdiction comply with the Convention.

Anti-fouling systems

Anti-fouling paints are used to coat the bottoms of ships to prevent sea life such as algae and mollusks attaching themselves to the hull - thereby slowing down the ship and increasing fuel consumption.

307 Mediating Institution

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

The new Convention defines "anti-fouling systems" as "a coating, paint, surface treatment, surface or device that is used on a ship to control or prevent attachment of unwanted organisms". In the early days of sailing ships, lime and later arsenic were used to coat ships' hulls, until the modern chemicals industry developed effective anti-fouling paints using metallic compounds. These compounds slowly "leach" into the sea water, killing barnacles and other marine life that have attached to the ship. But the studies have shown that these compounds persist in the water, killing sea life, harming the environment and possibly entering the food chain. One of the most effective anti-fouling paints, developed in the 1960s, contains the organotin tributylin (TBT), which has been proven to cause deformations in oysters and sex changes in whelks. During the 1960s the chemicals industry developed efficacious and cost-effective anti-fouling paints for the bottom of ships using metallic compounds, in particular the organotin compound tributylin (TBT). However, environmental studies provided evidence that organotin compounds persist in the water and in sediments, killing sea life other than that attached to the hulls of ships and possibly entering the food chain.

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Social Child abuse risks Sexual exploitation in travel and tourism industries

Adherence to the Code of conduct for the protection of children from sexual exploitation in travel and tourism (http://www.thecode.org/) Policies and management systems related to the Code. Breach of the code leads to violation of the following human rights: Universal declaration of human rights : articles 3, 4,5, 12 and 13 Convention on the rights of the child: articles 3, 6, 9, 11, 19, 32, 34 and 35 See section 3.3 as example on Kuoni human rights impact assessment covering children http://www.kuoni.com/docs/assessing_human_rights_impacts_0.pdf

304, 499 Mediating Institution

Migrant workers Recruitment and employment

Recruitment and employment of migrant workers Number of migrant workers employed Countries of origin Gender of workers Positions within company Length of contracts Recruitment channels Any fees for recruitment Passport retention Migrant workers both internal and external are a significant and growing feature of all company activities.

253 Mediating Institution

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Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

There are over 200 million migrants in the world. They are found within nearly all business sectors and across all regions. Many migrant workers, particularly those working in unskilled jobs are subject to discrimination and are vulnerable to exploitation and abuse. For many migrants exploitation begins during recruitment. Exorbitant fees and other charges, often at usurious rates of interest can leave many migrant workers effectively bonded labour whatever the subsequent conditions of employment. Company due diligence and reporting should therefore extend into the supply chain for labour.

Travelers with disabilities and medical conditions

Policies put in place by a dedicated governmental department to ensure assistance and safety of travellers with disabilities or medical conditions "Ensuring that all passengers, regardless of their personal situations and needs, are treated equally and with the dignity, respect, and courtesy they deserve"

515 Mediating Institution

Other Intermodality Does your company aim at providing solutions which address intermodality (“the ability to connect, and the connections between, modes of transportation”) e.g. - offers which allow end-customers to hire specific cars as and when needed, connectivity between different vehicles (car – train – public transport), services for linking different modes of transport etc. - services which connect different modes of transport for cargo or freight in a smart way thus saving energy, CO2 emissions or decreasing traffic?

153 Financial Markets & Information Users

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1 All references can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics-Research/Pages/default.aspx

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References

All references can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics-Research/Pages/default.aspx

9 Airclim/Seas at Risk/Bellona Foundation/North Sea Foundation/Transport & Environment/European Environmental Bureau, 2011. Air Pollution from Ships, Göteborg: Airclim.

153 European Federation of Financial Analysts Societies (EFFAS) and Society of Investment Professionals in Germany (DVFA), 2010. KPIs for ESG - A Guideline for the Integration of ESG into Financial Analysis and Corporate Valuation, Frankfurt am Main: EFFAS.

253 Institute for Human Rights and Business (IHRB), 'The Dhaka Principles for Migration with Dignity', Dhaka, 2011.

304 International Labour Organization (ILO), 2013. International Programme on the Elimination of Child Labour (IPEC). [Online] Available at: http://www.ilo.org/ipec/lang--en/index.htm#a1 [Accessed 26 March 2013].

306 International Maritime Organization (IMO) Convention, 'International Convention for the Prevention of Pollution from Ships (MARPOL)', 1973.

307 International Maritime Organization (IMO), 2002. Anti-fouling systems, London: International Maritime Organization (IMO).

308 International Maritime Organization (IMO), '2011 Guidelines for the Development of the Inventory of Hazardous Materials', 2011.

309 International Maritime Organization (IMO), 'Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships', 2009.

310 International Maritime Organization (IMO), 'International Convention for the Control and Management of Ships' Ballast Water and Sediments', 2004.

353 Kershaw, P., Katsuhiko, S., Lee, S., Samseth, J., Woodring, D., & Smith, J., 2011. Plastic Debris in the Ocean. In United Nations Environment Programme (UNEP), UNEP Year Book 2011 (pp. 20-33). Nairobi: United Nations Early Warning and Assessment.

367 MacKerron, C., 2011. Unfinished Business: The Case for Extended Producer Responsibility for Post-Consumer Packaging, Oakland: As You Sow.

499 The Code.org, 'Code Of Conduct For The Protection Of Children From Sexual Exploitation In Travel And Tourism', 2004.

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515 Transport Security Administration, 2013. Travelers with Disabilities and Medical Conditions. [Online] Available at: http://www.tsa.gov/traveler-information/travelers-disabilities-and-medical-conditions [Accessed 27 February 2013].

606 World Wide Fund for Nature (WWF), 2009. Silent Invasion: The Spread of Marine Invasive Species Via Ships’ Ballast Water, Gland: World Wildlife Fund (WWF) International.

610 World Wide Fund for Nature (WWF), 2013. Shipping problems: Steady release of oil and chemicals. [Online] Available at: http://wwf.panda.org/about_our_earth/blue_planet/problems/shipping/oil_release/ [Accessed 27 February 2013].